Certified Government Financial Manager (CGFM) Practice Exam 2025 - Free CGFM Practice Questions and Study Guide

The internal audit is primarily conducted by staff personnel within an organization and focuses on evaluating and improving the effectiveness of risk management, control, and governance processes. Internal auditors assess the management processes to ensure that they operate efficiently and effectively. Their work can provide insights into operational improvements, compliance with policies and regulations, and helps in identifying potential risks that the organization may face.

This type of audit is distinct from others in that it aims to enhance the organization's internal processes and controls rather than assessing the financial statements like an external audit or ensuring adherence to laws and regulations as seen in compliance audits. Performance audits also play a role, but they typically focus more broadly on the efficiency and effectiveness of programs and operations rather than managerial processes specifically. Hence, internal audit stands out as the most relevant choice in this context.